According to Frost & Sullivan, the digitalization of the logistics industry impacts each element of the value chain – from the shipper, to the broker and the carrier to the warehouse. Rising digitalization throughout the freight brokerage value chain is improving the efficiency and flow of freight from pick-up to drop-off. Many large brokers increasingly leverage digital solutions to augment their offering. Digital brokers provide value-added services to attract carriers and shippers. Algorithms, which streamline the process and pass on the savings to the shipper, allow automated freight brokers to take significantly lower commissions (5% to 10%) than traditional brokers (15% to 20%).

As part of the Frost & Sullivan industry event “Intelligent Mobility” taking place on June 29 in London a panel on “The Future of Freight” will provide the stage for a lively discussion on opportunities as well as challenges within the industry.

“New business models like digital freight brokerage or last mile delivery concepts such as vans and drones, combined with real time data, sensorisation, 3D printing and autonomous vehicle technology will transform the logistics sector,” said Christoph Domke, director commercial vehicles. “The digital freight brokerage market alone will create revenue opportunities worth [roughly] $210 billion for ecosystem participants by 2025.”

Globally, the connected truck market presents a massive $300 billion opportunity, with most start-ups emerging from the United States, India, and Europe. Most are competing in the digital freight brokerage segment. Examples include companies like Transfix, Freightos, Flexport, Loadsmart and Timocom.

Freight brokerage can be automated using digital technologies thereby driving greater transparency between shippers-carriers and supporting ad-hoc and planned freight demands at lower brokerage rates. Big Data and applications such as traffic prediction, sensors and terrain/weather, mapping, ITS through mobile integration and social media integration will make decision making faster and proactive rather than reactive.